Changpeng Zhao talks about the regulatory pressures Binance is facing

Binance CEO Changpeng Zhao (CZ) compared recent regulatory pressure on the stock market to the early development of automobiles.

In one open letter On Wednesday, CZ said that the introduction and development of cryptocurrencies had a lot in common with automotive regulations in that “laws and guidelines were developed in the process”.

“We are seeing broader adoption of crypto around the world and the need for a clearer regulatory framework in different countries. In fact, more regulation is a positive sign. “

Binance is trapped in a tangled regulatory web in jurisdictions like the Cayman Islands, the UK, Thailand, Singapore, and others. The exchange tried at times to stay ahead of the rules when it hired two former members of the Financial Action Task Force as advisors in March.

In his letter, the CEO reiterated that Binance has its own rules for using the platform, including strict internal trading guidelines that prevent users from actively trading assets within 30 days.

Additionally, a Safe Assets Emergency Fund (SAFU) was added in July, designed to protect users’ assets as well as listing standards and firewalls to separate the listing pool, the CEO notes.

“Compliance is a journey – especially in new areas like crypto,” said CZ, noting that the crypto industry is filled with a lot of uncertainty. “We have also recognized that the more we grow, the more complex and responsible we become.”

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According to Coindesk

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